USDX (USD Index)
A strong breakout is not a guarantee the price will continue moving to the breakout direction. Today, U.S dollar index breakout above red trendline resistance and secure the level near 96.70 resistance. It is a major breakout and holding out through European session. However, entering the U.S session, the index starts losing ground and currently traded near its opening level.
No conclusion yet on the breakout or no breakout situation. Traders will watch where the index close at the end of the day.
News to watch
For full outlook for this week, you can follow Forex Outlook For The Week 4-8 February 2019
Technical Analysis
EUR/USD
EUR/USD breach 1.1360 and slump to as low as 1.1324 before turning up. The pair currently traded near its opening level and might end the day with an upset for the bear. We are waiting for a close above 1.1360 at the end of the day to open the high-odds long positions. However, if the bear widened the distance from 1.1360 then it is better to continue watching further bullish signal.
Today critical level to watch:
Support: 1.1360, 1.1300
Resistance: 1.1400, 1.1500, 1.1580
GBP/USD
A bullish engulfing pattern or bullish pin bar is on the making on the GBP/USD daily chart. The pair dropped below daily SMA 200 two days ago and this could be the first time bullish reaction happen. If the bull could close the pair above SMA 200 by the end of the week then GBP/USD bound to launch toward 1.3250.
Today Critical level to watch:
Support: 1.2800, 1.2625
Resistance: 1.3000, 1.3250, 1.3300
USD/JPY
The resistance 110.00 is a tough nut to break as USD/JPY rejected from the resistance today. Three-day attempts to leave no close above the resistance. It looks like USD/JPY might fall to test the black trendline. Traders could prepare for a long position near the trendline.
Today critical level to watch:
Support: 109.00, 107.40, 105.00
Resistance: 110.00, 110.50, 111.00
AUD/USD
The cat is out of the bag and it is a hard time for the bull, especially when the trading week will come to an end soon. Tomorrow is the last day of this trading week. Without any rally above 0.7160 then AUD/USD trend might have changed to bearish and it is better not taking any long positions.
Today critical level to watch:
Support: 0.7000
Resistance: 0.7160, 0.7200, 0.7300, 0.7330